Tax Inspectorate urges employers to state real value of employees' wages

The total amount of the income tax withheld from wages by Moldovan companies is much smaller than the statistics about the average salary in the real sector of economy. Marina Cernalev, an official with the Tax Inspectorate, explained, at a news conference, that this happens because the companies hide the real salaries payed to their employees, Info- Prim Neo reports. She says “the salary in envelope” is a phenomenon with malign effects both for the employer and employee, since their interest thus cease to be protected by the Labor Laws. The construction,commerce, services branches are the most affected in this respect. According to official statistics, the average salary in building is 3,000-3,500 lei, yet the amount of the income tax implies it is not higher than 1,000 – 1,500 lei. Marina Cernalev adds that, in accordance with the Tax Code, starting from January 1, in cases where the income tax will not correspond with the real salaries of the employees, the Inspectorate will use the amount of the estimated income in calculating the taxes.